Noboa scraps diesel subsidy in Ecuador amid protests: Video
Ecuador’s President Daniel Noboa has ended the diesel subsidy, raising the fuel price from $1.80 to $2.80 per gallon. The government says the move will save about $1.1 billion annually, which will be used for social programs and direct aid to vulnerable groups.
Government spokesperson Carolina Jaramillo said the decision is final and aimed at directing resources to those who need them most. Programs include the “Raíces Bonus” for farmers and subsidies for transport operators to offset higher fuel costs.
Protests have already broken out in provinces like Carchi and Santo Domingo, with roadblocks and arrests reported. The Confederation of Indigenous Nationalities of Ecuador (Conaie) called the move a “paquetazo” and warned it will affect millions of poor and rural families. The group has threatened nationwide mobilizations, recalling their major role in the 2019 protests that forced a previous government to reverse a similar reform.
The government says it will not negotiate the decision, while critics warn the measure could increase inflation and living costs. Officials argue the reform is necessary to reduce Ecuador’s deficit, which reached nearly 5% of GDP when Noboa took office in 2023.
This story is written and edited by the Global South World team, you can contact us here.
